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FOR IMMEDIATE RELEASE
OLDWICK - MAY 01, 2015 09:46 AM (EDT)
A.M. Best has revised the outlook to negative from stable and affirmed the financial strength rating of A+ (Superior) and the issuer credit ratings of "aa-" of the members of NYCM Insurance Group, which are New York Central Mutual Fire Insurance Company and A. Central Insurance Company, which operate under a pooling arrangement and are both domiciled in Edmeston, NY.
The revision of the outlook to negative reflects the companies' unfavorable underwriting performance and recent adverse development in loss reserves mostly on their core lines of business. Additionally, the concentration of geographical risk in New York is subjecting NYCM Insurance Group to catastrophe and weather-related losses, which have been seen with a high severity of losses in 2014.
NYCM Insurance Group maintains solid risk-adjusted capitalization to support its ratings, steady investment income and a continued well-established reputation in the market place. These positive rating factors are offset by the group's unfavorable underwriting performance in recent years.
Negative rating actions may occur if the group's underwriting and operating results do not improve as A.M. Best expects, based on management's projections, or should risk-adjusted capitalization materially weaken. The company will have to improve underwriting performance while maintaining adequate reserving and risk-adjusted capitalization for the outlook to return to stable.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.